Use these Cash Management Apps – They are better than FDs!

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Have you ever considered putting your money into fixed deposits (FD) with banks but has been put off by the slow growth? One of the biggest drawbacks of putting your money into FD is that you need to put a lot of money in order to enjoy substantial returns.

Dropping market and interest rates

You will be lucky if you can find a bank today that will give you more than 2% interest per year in your FD. The savings accounts are worse off. So, what options do you have? These days, there have been several new platforms that give you these functions. If you do not mind the low interest, then you are in for a treat where you can enjoy some returns without needing to commit to a long-term and high amount (like FDs).

Which one should you choose?

You might have come across such tools before where they call themselves cash management apps. Touch n’Go recently launched the GO+ while Affin Hwang-partnered Versa is another. You might also have come across StashAway Simple by robo abvisor StashAway. These brands are there to help you manage your cash better but what do they perform actually?

They generally work very much like banks. Your deposits are used to invest into money market funds that are low in risk. As such, the returns are lower too. Benefits include:

  • Convenient – You just need to download the app, top up the amount and you are good to go.
  • Commitment – There is no commitment to them like other banking products. You can top up or withdraw anytime you like.
  • Capital – You do not need much capital to start. Just a small amount will do and it can be as low as RM1.

Do take note that withdrawal from these funds might take a day or two while they are not as guaranteed as your savings accounts. So, among the 3 cash management apps, which one should you choose? You can make your decision based on the factors below:

  • Fees – There are no fees incurred or charged to you when you use any of the 3 apps. However, do take note that GO+ has an RM10 minimum while Versa has an RM1 minimum while StashAway Simple does not need any.
  • Returns – These are projected numbers where GO+ is at 1.5% p.a while Versa is around 2 to 2.4% and StashAway Simple is about 2.4%.

At the moment only StashAway Simple is Syariah-compliant while GO+ is expected to be in the future.

Making the decision

Generally, all 3 of these platforms offer you convenience and a new alternative to help you save money. This means you now can put money into these platforms from your smartphone. The projected returns for these platforms are quite similar. If you have an amount in your Touch n’Go e-wallet which is dormant, putting it into GO+ would be a great way to start. Versa is ideal if you are looking for a fast-withdrawal process while StashAway Simple is very much known to be a good alternative to fixed deposits.

 

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